Tax Preparation for Beginners

August 2, 2015 By Carlo

The time in which you need to begin your tax preparation always seems to sneak up rather quickly. Many people cringe at the thought of having to gather all of their financial statements and documents to file. However, filing taxes can be both easy and rewarding if you go about it correctly. This means staying organized and filing your taxes either online, if you’re knowledgeable with accounting software, or with a certified accountant or tax company.

Certified accountants are experts at bookkeeping and dealing with financial statements. In order to begin your tax preparation, it is important to choose a reliable, convenient and affordable accounting company to help with filing your tax return. This saves individuals the hassle of trying to figure out which information is needed, and where it should be placed. However, if you happen to choose an unreliable or fraudulent accounting company to complete your taxes, the outcome could be severe. It is always a good idea to ask for the credentials and references of the tax accountant/company you choose.

Tax preparation companies are companies which specialize in filing tax returns. These companies often have a number of tax preparers on hand to help individuals with their financial accounting needs come filing time. Although they specialize in tax returns, they are also knowledgeable in the fields of bookkeeping and small business accounting. There are also some financial tax institutes that are able to help with tax preparation for business and individual needs, filing tax returns, resolving IRS & tax issues, and planning and research. Not only that, but they are also able to help with full accounting needs, payroll services, and new business setup on top of bookkeeping services in Atlanta.

There are various different types of tax situations. These can include personal returns, rental properties, estate/trust, divorce and retirement finances, tax problems, and more. The situation can determine your tax preparation, and often the accountant or accounting company you choose.

For quick and simple tax returns, many individuals will choose tax preparation chains to guide them through the process. The tax preparers that work within these chains enlist the help of tax/accounting software to help make sure everything is getting done correctly. The cost of having a chain business prepare your taxes is lower than that of a tax professional.

For more complex tax preparation situations, such as owning a business or more than one type of income, it is beneficial to find a tax preparer that specializes in your specific tax situation. It is much safer to hire someone who knows what they are doing, rather than someone who can only speculate. In order to find a specialized tax preparer, you will need to do research. They can often own their own businesses, work for a small company, or be part of a larger franchise.

There are different types of tax preparers for each situation. An enrolled agent (EA) is licensed by the federal government and has the authorization necessary to appear in place of a taxpayer at hearings or meetings. These agents also specialize in a number of different tax preparation areas, so it’s important to ask before hiring. A certified public accountant (CPA), although educated in the field of accounting, may not be the expert you’re looking for. While CPAs can help with the creation of tax plans, or complex financial situations such as divorce, retirement, business ventures, or anything else that would have significantly impacted one’s income, they may not have the filing experience needed for preparing your taxes. A tax attorney is someone who is able to offer services should any legal or criminal issues arise when you are filing your taxes. They are also knowledgeable when it comes to corporate taxes, but may not be the best choice for simple tax returns.

Each type of tax preparer has specialized in different areas of tax preparation, either simple or complex, so it is important to make sure that you do research and determine which tax preparer is the best fit for you. If you are unsure how to go about finding a tax preparer to suit your needs, consult with an accounting firm or tax preparation franchise and they will be able to point you in the right direction.